Disclaimer: The findings of the following analysis is the sole opinion of the writer and should not be taken as investment advice
The impact of the falling market has been felt in the Litecoin [LTC] market as well. Even though the LTC market was consolidating, the falling price has broken the sideways momentum. The digital asset has slipped through multiple levels of support at $163, $145, and was currently at the $133 support level.
At the time of writing, LTC was being traded at $133.98.
Litecoin one-hour chart
Source: LTCUSD on TradingView
The above chart of the digital asset indicated the price had been falling within a descending channel. The sudden drop has not allowed the price to find support under $163, and the price has slipped to the $130 price level. Currently, the lowest local region.
This price point has posed as a point of return for the asset’s value and the traders may long it.
Reasoning
The selling pressure in the market has pushed LTC into the oversold zone as indicated by the relative strength index. The indicator had been signaling that LTC has been oversold for a long time now, and now might be a time for a reversal. Although the asset was oversold, it strives to reach a stable value as the buyers enter the market.
Being a strong altcoin in the market, LTC has been seeing high momentum, although currently, it has witnessed considerable momentum on the seller side. This was a bearish indicator, however, it is also the right time for traders to buy the dip.
Important levels
Entry: $135
Stop-Loss: $129
Take-Profit: $148
Risk-to-Reward: 2.15
Conclusion
The Litecoin market has a dip in its price and although bearishness has entered the market, it may be reversed as traders capitalize on the opportunity to buy the digital asset. The short-term market may witness strong pressure from the traders who may enter at $135 and take profit at $148.
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